People unfamiliar with the two professions tend to use bookkeeper and accountant professions interchangeably. But reality differs from assumptions. Bookkeeping done by a bookkeeper is managing financial books by documenting transactions, managing accounts, and recording financial data of a company. Collectively these tasks are called bookkeeping which is done by a bookkeeper.
However, an accountant is the person who uses the above mentioned data to better or grow the financial health of the business. They make financial decisions for the company based on the data. An accountant can do both the bookkeeping as well as making financial decisions based on the data but an entry-level bookkeeper cannot be considered an accountant. You can learn more about the differences between the two before making a wise decision.
It is important to fill both the positions in a company otherwise the complete task will need to be performed by the owner. It requires it to be done every month and year. Some might think it is possible but experts advise if professionals are hired, the work and decisions can reach a higher level.
It cannot be possible that the owner has the same potential as that of bookkeeper and accountant unless they have studied and are certified to do so. It requires a skill set to prepare financial statements and take financial decisions based on them. Everyone does not have the acumen to do so.
A business is bound to flourish and finance grow organically when the professionals are hired who have knowledge and experience to do the same. Some people get confused whether they should hire an accountant or bookkeeper. And honestly there is no one answer to this.
It all depends on the requirement of the business and the budget you can assign for the positions to be filled. Also both of them possess a different skill set which are interlinked and equally important.
Do not think of these professionals as a liability rather they are an investment. They help the businesses either small or large to flourish. The financial foundation of a company grows abundantly. The owner can be assisted by able people to make better decisions undoubtedly.
